Continuous feedback and incentive schemes have a major impact on determining employee performance and organizational outcomes. This systematic review examines the literature on the interaction between sustained feedback mechanisms, both positive and negative, and incentive schemes. The analysis highlights the importance of feedback in employee motivation and productivity and explores the influence of incentive schemes on performance outcomes. This study accesses the Web of Science (WoS) and Scopus databases to systematize English-language articles published between 2018 and 2023, following the guidelines of the PRISMA model. This approach provides an empirical basis for a critical examination of the topic. This study offers a comprehensive understanding of the differences in feedback and incentive schemes between the public and private sectors, providing valuable insights into these differences not only in terms of organizational types but also in cultural contexts. In addition, it highlights the most relevant keywords in this process, enriching the knowledge in the field of “continuous feedback and adjustment of incentive systems”. This article aims to illuminate the intricate dynamics between continuous feedback mechanisms, incentive schemes, and employee performance. This systematic review provides valuable information for organizational leaders, human resource professionals, and academics seeking to increase employee motivation and productivity in contemporary work environments.